The Burnsville, MN-based business was issued pawn broker licenses on April 19 to open two stores in Des Moines, but those plans were interrupted by a six-month moratorium on new pawn shops and payday loan stores that was enacted Monday by the City Council.
The signs were still posted this afternoon at 4620 S.E. 14th St. despite requests to have them removed, said Roger Brown, an assistant city attorney.
"It's their plan to be open for business someday -- we don't dispute that plan," Brown said. "I don't see any violation for their sign that's inside the window. Obviously everything changes the minute that door opens for business, but we're going to view it as an irritation but not a legal violation as long as it's just a sign proclaiming something that, at least at this point, is not correct."
As of early this afternoon, city and Pawn America officials had been trading phone messages regarding the request to remove the signs, Brown said.
Michael Green, an attorney from the Brown Winick law firm who's representing Pawn America, referred questions to the company's public affairs representative, who could not immediately be reached for comment.
Businesses who believe the moratorium causes them "unnecessary hardship" can launch an appeal before the council as soon as its June 14 meeting. Officials from Pawn America, who plan to open stores at 3715 Merle Hay Road and 4620 S.E. 14th St., are expected to seek relief from the moratorium.
There aren't any "now open" signs at the Merle Hay Road location, Brown said.
"I don't know what kind of message they're trying to send if they choose to put signs up in the windows, but we will be forced to do something if they actually were to open for business," he said.
The city will "seek relief from the court to order them to close" if the business opens, he added.
City leaders will spend the next 180 days examining long-term zoning changes that could require separation distances between the businesses and cap interest rates for loans made by pawn shops. Language in the Iowa code appears to give municipalities the ability to regulate interest rates on loans given by pawn shops, city officials said.
The moratorium was urged by neighborhood leaders, Iowa Citizens for Community Improvement and several business owners who've voiced concerns about the number of pawn shops and payday lenders in Des Moines.
There is precedence for the restrictions the city is considering for pawn shops and payday loan stores. City zoning already restricts where bars, liquor stores and pornography shops can be located, for instance.
There are an estimated 14 pawn shops and 31 payday lenders in Des Moines, city officials said.
Brad Rixmann, owner of Pawn America, told council members many of the negative perceptions people have about pawn shops are unfounded. The business would make over $2 million in building improvements at the two locations proposed in Des Moines, both of which are former Furniture Row stores, company officials said. There are 23 Pawn America locations in Minnesota, Wisconsin, South Dakota and North Dakota.
City Councilman Brian Meyer said his week he is disappointed the signs are posted in the window of the building at 4620 S.E. 14th St. Meyer said he hopes the company isn't "intentionally thumbing their nose at the city."
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